News Release
ASC sanctions Jan Gregory Cerato (a.k.a. Jan Strzepka) for breaching Alberta securities laws
Sep 26, 2022
CALGARY – September 26, 2022 – The Alberta Securities Commission (ASC) has sanctioned Jan Gregory Cerato (a.k.a. Jan Strzepka) for illegally distributing securities contrary to section 110 of the Securities Act (Alberta).
Cerato raised at least $200,000 by entering into investment contracts with at least 16 investors, who paid a minimum of $10,000 or the equivalent in Bitcoin. Cerato did not file a prospectus with the ASC, nor was there an exemption from the prospectus requirement available in the circumstances. While investors understood that their funds would be used to trade cryptocurrencies and they would be repaid their principal along with a share of profits, Cerato failed to explain the associated risks to them and instead focused on the potential returns. Ultimately, the trading did not generate any profits and investors received only a small portion of their initial investment, resulting in the loss of thousands of dollars.
In its sanction decision, an ASC panel ordered that Cerato pay an administrative penalty of $40,000, that he be subject to certain market-access bans for at least eight years from the date of the ASC decision or until the administrative penalty is paid in full (whichever is later), and that he pay $125,000 of the costs of the investigation and hearing.
The panel considered that Cerato poses a significant risk to investors and the capital market, and stated in its decision that he “accepted little or no responsibility or regret and instead blamed others and exhibited contempt towards those who were harmed by his actions.” A copy of the decision is available on the ASC website at asc.ca.
For more information on when Alberta securities laws apply to crypto assets and what to consider before investing in cryptocurrencies, visit checkfirst.ca.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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For further information please contact:
For Media Inquiries:
For Investor Inquiries:
Theresa Schroder
Senior Advisor, Communications
media@asc.ca
ASC Public Inquiries
Toll Free: 1-877-355-4488
inquiries@asc.ca